PUTRAJAYA: The private sector should emulate the government’s move to improve wages, says Human Resources Minister Steven Sim.
In a statement on Thursday (Aug 15), Sim welcomed the Public Service Remuneration System (SSPA), saying it is expected to have an economic spillover once implemented.
“I urge the private sector to follow the government’s move in improving employees’ wages as a means to appreciate their productivity and contributions to the company,” he said.
Sim also encouraged companies to participate in the progressive wage policy pilot project currently underway.
He added that the Human Resources Ministry has received recommendations from the National Wage Consultative Council on the new minimum wage and is preparing to present it to the Cabinet.
Sim echoed Prime Minister Datuk Seri Anwar Ibrahim’s call for the private sector, especially companies with high profits, to review their salary schemes to provide more reasonable remuneration to their employees.
Anwar also said the public service wage reform announced was a message to private companies to raise workers’ wages to alleviate financial burdens.
Communications Minister Fahmi Fadzil said the announcement ended the 12-year wait for civil servants on improved wages.
“The implementation of the SSPA beginning Dec 1 will see a significant shift as it not only focuses on wages but also performance.
“Following this, increments and promotions will be based on performance,” he told reporters after the 19th Majlis Amanat Perdana Perkhidmatan Awam (Mappa) held at the Putrajaya International Convention Centre on Thursday (Aug 15).
He said integrity was also a priority, citing Prime Minister Datuk Seri Anwar Ibrahim’s call where department heads who protect officers that flout the rules will also have action taken against them.
On wages in the private sector, Fahmi said the progressive wage policy project was implemented with a RM50mil incentive from the government.
“This will gradually see their wages increase,” he said.
“I have also been made to understand that the minimum wage is being studied and will be standardised not only across the public but also the private sector,” he said.
